Doctrine by topic · DGT Observatory

Notoriously Irregular Income: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

← DGT Observatory

How the DGT's position has evolved

Doctrinal reversal High confidence 12 rulings · 2015–2025

Current position

Amounts resulting from the mutual agreement termination of an employment relationship are considered income obtained in a notoriously irregular manner. To apply the 30% reduction under Article 18.2 of Law 35/2006 on Personal Income Tax (IRPF), the compensation must be attributed to a single tax period. This reduction is subject to an annual limit of 300,000 euros.

The DGT has moved from denying the reduction on gratifications from collective agreements—on the grounds that they did not fit the Regulations or lacked a generation period exceeding two years—to recognizing the irregularity in compensations for the suppression of supplements or pensions. Currently, the criterion extends to amounts resulting from the mutual agreement termination of the employment relationship.

Turning points

  1. V1132-20

    Change of criterion to consider that compensation for the suppression of a pension supplement is income obtained in a notoriously irregular manner.

  2. V2368-25

    Extends the application of the reduction to the amounts paid for the mutual agreement termination of the employment relationship.

Analysis based on 12 of 12 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

12
V2368-25 4 Dec 2025

30% reduction possible on early retirement compensation if paid as capital

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoforma notoriamente irregularreducción del 30%extinción de mutuo acuerdoimputación en un único período impositivo LIRPF — Ley 35/2006 del IRPF art. 18.2LIRPF — Ley 35/2006 del IRPF art. 17.2.a
Affects CompanyExpat · Non-residentIndividual
V0667-20 2 Apr 2020

30% tax reduction cannot be applied to compensation for lack of notice

SG de Impuestos sobre la Renta de las Personas Físicas
indemnización por falta de preavisorendimientos del trabajoperíodo de generaciónreducción del 30%alto directivo LIRPF — Ley 35/2006 del IRPF art. 7.eLIRPF — Ley 35/2006 del IRPF art. 17.1
Affects CompanyExpat · Non-residentIndividual
V1043-17 4 May 2017

30% reduction for extraordinary bonuses for services rendered is not applicable

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoreducción del 30 por cientoperiodo de generaciónforma notoriamente irregulargratificación extraordinaria LIRPF — Ley 35/2006 del IRPF art. 17.2 a)LIRPF — Ley 35/2006 del IRPF art. 18.2
Affects CompanyExpat · Non-residentIndividual
V1823-15 10 Jun 2015

40% tax reduction cannot be applied to compensation for accumulated time off

SG de Impuestos sobre la Renta de las Personas Físicas
reducción del 40%rendimientos del trabajotiempo libre acumuladoperíodo de generaciónforma notoriamente irregular LIRPF — Ley 35/2006 del IRPF art. 18.2.aRIRPF — RD 439/2007, Reglamento del IRPF art. 11
Affects CompanyExpat · Non-residentIndividual

Apply this to your case

Beckham Law & impatriate taxationTalk to the team applying this doctrine daily.
IRPF Spain 2026 CalculatorEstimate the impact on your case in two minutes.
Talk to the tax teamWe check whether this criterion affects you and what it means in your situation.
Email
Contact